Krugman: Trump Attempt to Fire Lisa Cook is Illegal

Tuesday, August 26, 2025

Paul Krugman: Yesterday Donald Trump said that he had fired Lisa Cook, a member of the Federal Reserve Board of Governors. My wording is advisable: He "said" that he had fired her. I'm not a lawyer, but it seems clear that he does not have the right to summarily fire Fed officials, certainly on tissue-thin allegations of mortgage fraud before she even went to the Fed.

Posted by retort at 11:48 AM | 20 COMMENTS | permalink | Comment on This Entry |

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If [Fed chairman Jerome] Powell caves, or the Supreme Court acts supine again and validates Trump's illegal declaration, the implications will be profound and disastrous. The United States will be well on its way to becoming Turkey, where an authoritarian ruler imposed his crackpot economics on the central bank, sending inflation soaring to 80 percent:

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Someone should tell Paul that mortgage fraud is also illegal but here we all are lolz.

#1 | Posted by Bluewaffles at 2025-08-26 12:05 PM | Reply | Funny: 2

Someone should tell Trumpy to take care to faithfully execute the law. She has not Ben charged or convicted. And no evidence presented in a court under oath.

Until then it's another Trumpy lie.

Also

Who has actually been convicted of mortgage fraud?

Oh yeah. Trumpy.

#2 | Posted by donnerboy at 2025-08-26 12:15 PM | Reply | Newsworthy 3

I find it hard to believe this lady did what she is accused of, but stranger things have happened this week. It is shameful that no evidence has been presented, yet by some minds, she is out of a role at The Fed. Even Der Dotard had a trial. Present the case and the evidence, and let a skeptical world decide.

In the meantime, one of the most important economic entities in the Western World is under attack and if Trump is successful, the effects on the US economy will be dramatic and long-lasting. Until January, 2017 political risk was not something that needed to be considered in the US capital markets. Those days are gone, and that risk continues to grow...

#3 | Posted by catdog at 2025-08-26 12:29 PM | Reply

But Trump's lackies say the president can do whatever they want. Just like how the Founding Fathers intended.

#4 | Posted by Derek_Wildstar at 2025-08-26 12:32 PM | Reply

Present the case and the evidence, and let a skeptical world decide.

The executive branch isn't the judicial branch, why should the world decide? I find it interesting all these new rules include "letting the world decide" the executive branches authority.

It does create a conundrum though, we might get an official ruling from SCOTUS on whether the Fed is Constitutional, and/or under the executive branch.

If its not under the executive branch what branch is it under?

#5 | Posted by oneironaut at 2025-08-26 01:08 PM | Reply

"the implications will be profound and disastrous"

Haven't we already crossed that line numerous times? The larger problem is that nobody is doing anything about it. Somebody who could do something about it needs to grow a gawd-damned spine!

#6 | Posted by Whatsleft at 2025-08-26 01:36 PM | Reply

Someone should tell Paul that mortgage fraud is also illegal but here we all are lolz.

#1 | Posted by Bluewaffles

Oh? When was the trial? Apparently you fascists now want to remove the right to due process from US citizens as well.

#7 | Posted by Whatsleft at 2025-08-26 01:39 PM | Reply | Newsworthy 1

Real estate fraud mad about real estate fraud he made up.

News at 11.

#8 | Posted by Alexandrite at 2025-08-26 01:42 PM | Reply | Newsworthy 1

If its not under the executive branch what branch is it under?

#5 | Posted by oneironaut

You could STFU while you look that up yourself.

#9 | Posted by Whatsleft at 2025-08-26 01:42 PM | Reply

Pulte sent his referral to the DOJ on Wednesday and accused her of having "falsified bank documents and property records to acquire more favorable loan terms, potentially committing mortgage fraud under the criminal statute."

Hilarious, given the source.

#10 | Posted by Alexandrite at 2025-08-26 01:46 PM | Reply

@#3 ... I find it hard to believe this lady did what she is accused of, but stranger things have happened this week. It is shameful that no evidence has been presented ...

I've heard reports that the alleged actions took place before she was on the Fed. If that is correct, then ~removing for cause~ may become more difficult.

#11 | Posted by LampLighter at 2025-08-26 01:50 PM | Reply

@#7 ... Oh? When was the trial? ...

Supreme Court Shields Fed (May 2025)
news.bgov.com

... The US Supreme Court shielded the Federal Reserve from Donald Trump's push to fire top officials at independent federal agencies, in a decision likely to quell concerns that the president might move to fire Jerome Powell.

In a ruling Thursday that let Trump oust officials at two other agencies, the court said its decision wouldn't apply to the Fed, calling it a "uniquely structured, quasi-private entity." ...

Fed watchers have been eagerly awaiting a Supreme Court decision to see if the court would back a carve-out for the central bank. ...

The Fed has closely guarded its independence over the past few decades. Economic research shows that countries whose central banks operate without interference from politicians or election cycles tend to have more stable prices and better economic outcomes. ...

#12 | Posted by LampLighter at 2025-08-26 01:54 PM | Reply

... The Trump administration has a new weapon at its disposal in its efforts to take down Democrats and their appointees: mortgage records.

Members of the administration have now alleged three public officials have committed mortgage fraud, referring each to the Justice Department. The administration has signaled that it has just gotten started: U.S. Pardon Attorney Ed Martin was recently tapped "to investigate fraud by public officials in mortgages," according to a letter Martin sent. ...

#13 | Posted by LampLighter at 2025-08-26 01:57 PM | Reply

A rapist 34 time convicted felon breaking the law?

Inconceivable

#14 | Posted by Nixon at 2025-08-26 02:03 PM | Reply

"Real estate fraud mad about real estate fraud he made up. News at 11."
~Alexandrite

(Unrecognized) Newsworthy flag

#15 | Posted by Danforth at 2025-08-26 02:03 PM | Reply

Surely the compulsive liar would never lie about someone breaking the law.....

"Just say you're opening an investigation"

"Just say you found voter fraud, and I will handle the rest."

#16 | Posted by Nixon at 2025-08-26 02:05 PM | Reply

The Fed and Article II

Drawing on overlooked documents and congressional debates, this Article offers a comprehensive assessment of the Federal Reserve's constitutionality under Article II. We conclude that under the Court's modern precedent, which requires Congress to clearly state when it wishes to restrict removal, the President likely already enjoys a great deal of statutory authority to remove the Federal Reserve's leaders.

Beyond that, in light of the Federal Reserve's current structure and functions, the President might have constitutional authority to do so. To the extent the Federal Reserve exercises inherently "executive power""such as initiating enforcement actions, issuing fines, and promulgating consumer-protection rules"precedent suggests that Congress cannot prevent the President from freely removing the Federal Reserve Chair, members of the Board of Governors, and perhaps other senior officials
publications.lawschool.cornell.edu

#17 | Posted by oneironaut at 2025-08-26 02:32 PM | Reply

You could STFU while you look that up yourself.
#9 | Posted by Whatsleft

Sad you'd be so uncurious about your government and its constitution.

#18 | Posted by oneironaut at 2025-08-26 02:37 PM | Reply

#18 | Posted by oneironaut

It's not up to us to educate your stupid ass.

I'm sure you'd prefer the Cornell opinion. And in this case I'm sure most of the country would prefer an anti-authoritarian ruling, as the SCOTUS made back in May.

This brings up a Curious question... why would you leave authoritarian run China to come to the US and advocate for authoritarianism?

#19 | Posted by Whatsleft at 2025-08-26 03:15 PM | Reply

Sad you still believe anyone is buying your lie about being a Chinese immigrant.

#20 | Posted by ClownShack at 2025-08-26 03:40 PM | Reply